Assuming that the supply for a product is stable,an increase in price will lead to an increase in producer surplus.

Question

Quizplus · Accepted Answer

An increase in price will lead to an increase in producer surplus because producers will receive more money for each unit sold, resulting in higher profits. This assumes that the supply for the product remains stable, as an increase in price could also lead to a decrease in demand and ultimately lower producer surplus if supply outweighs demand.

Assuming That the Supply for a Product Is Stable,an Increase